I retired from teaching in 2004. As part of our retirement, the school district offered a $20,000 retirement bonus to be paid in four $5000 installments each January of the 4 years following retirement. The district withholds Fed, state, social security and medicare taxes. I received a W-2 statement for the $5000. Is this bonus considered earned income? Am I eligible to contribute $4500 for a 2005 Roth and $5000 for a 2006 Roth?